Wealth Management Blog | WrapManager (32)

Federated Investors - Weekly Update

Posted by WrapManager's Investment Policy Committee

February 16, 2016

Federated Investor's Senior Equity Strategist, Linda Duessel, provides her insight on this year's market volatility in Federated's weekly update, Main Street is Calmer than Wall Street for a Change.

"I spent most of the week in San Diego, where I wasn’t prepared for the 80-degree temperatures and blinding sunshine, leaving my sunglasses at home (living in cold and cloudy Pittsburgh, I only associate sunglasses with summertime). Well, a chill adviser gave me hers! It’s all chill here. Walking along the water, there is a young man practicing tai chi—be calm, find your center. He’s not worried. Further along my walk is a tarot card reader having an intense discussion with a couple—I’m not eavesdropping but I think the discussion is personal and not about the markets. And a little further down is a vendor selling dream catchers—ever heard of them? Off to meetings with advisers, one lamented, “What do you tell clients?! They look at the screens and say ‘blankety blank blank.’ ”

ETF Tracking Error – Doug’s Quiz Corner

February 10, 2016

Quizmaster, Doug Hutchinson, has come up with another great quiz for us regarding the factors that may cause the performance of an ETF to differ from the performance of an index. [+] Read More

Buckle Up for Market Volatility this Year

February 10, 2016

Volatility has persisted throughout the start of 2016, to the point where it almost feels relentless. Coping with volatility is rarely easy for investors, and the fact that we’ve experienced the worst 10-day start to a calendar year1 has many wondering if it makes sense to shift away from equities for now. No one can say with certainty whether the stock market will recover quickly and finish the year positive. But what we can control is how a portfolio is allocated in a volatile environment. For investors, we think it is less about: “should I go to cash and/or be more defensive?” and more about: “is my portfolio diversified sufficiently (to help reduce volatility), and should I consider including a tactical strategy in place designed to take defensive action in a prolonged downturn?” In other words, we think it is more important to have confidence in your asset allocation versus trying to forecast what's ahead for the markets. [+] Read More

What's the difference between the Fiduciary Standard and the Suitability Standard?

February 3, 2016

Here’s a fact about financial advisors (NOT Investment Advisors) that may surprise you: they do not necessarily have to act with your best interests in mind. Please, take a moment to shake your head in disbelief. It’s ok. Actually, it’s not ok! The way the law exists today, advisors and brokers can be classified in one of two ways. Either they give you investment advice according to the fiduciary standard, or they adhere to what's known as the suitability standard. It’s the latter one that can be problematic, and it’s also the growing subject of legal debate as the White House and Department of Labor consider new rules. Below, we broke down what you need to know now and what to look for ahead. [+] Read More

Federated Investors - Q4 Strategic Value Dividend Commentary

January 26, 2016

The Federated Strategic Value Dividend Q4 Commentary reviews the end of 2015 including an assessment of the uncertainty caused by oil prices, interest rates, manufacturing activity and a slowing China. "Market Overview Concerns over energy, manufacturing and China helped snuff out a budding Santa Claus rally, with the three major domestic equity indexes closing down on the month and the big two—the S&P 500 and the Dow Jones—also down for the year. December’s performance was representative of the entire year, as encouraging news on jobs, autos and consumers once again battled unsettling news on oil prices, manufacturing activity and a slowing China, leaving investors uncertain about the future. [+] Read More

Announcing: WrapManager's Q1 2016 Top Equity Money Manager Picks

January 21, 2016

There are literally thousands of money managers out there. If you’re trying to figure out which one (or ones) is right for you to help you reach your investment goals, you may feel overwhelmed by all the options. Where do you begin researching and what criteria do you consider? We’d like to help. Each quarter, WrapManager’s Investment Policy Committee (IPC) compiles a list of top money manager picks in order to help investors discover and evaluate money manager strategies. These encompass a wide range of asset classes and investment disciplines. [+] Read More

Concerned about Market Volatility? Time to Reassess Your Risk Tolerance

January 20, 2016

The stock market has gotten off to one its worst starts ever for a year—on last Friday alone, the S&P 500 and the Dow Jones were both down over 2%,1 and for the year the Dow has already declined over 1,400 points. Both indices are down some 8% for the year,2 and it’s still just January! Fears over China’s slowdown, cratering oil prices, and iffy corporate profits have many investors worried about what lies ahead. In fact, a recent survey conducted by the American College showed that over 60% of retirement income specialist’s clients were concerned about the recent market volatility and their retirement security.2 Does January’s market volatility have you concerned too? [+] Read More

Human Capital and Your Investment Portfolio - Doug's Quiz Corner

January 13, 2016

Quizmaster, Doug Hutchinson, has come up with another great quiz for us regarding the potential effect of human capital on your investment strategy. Good luck! [+] Read More

Lower Your Taxes in 2016: Take Advantage of Tax Deductions and Credits

January 13, 2016

A new year is a fresh slate in many ways, including the way you manage your taxes. There are numerous tax deductions and tax credits available to taxpayers who know about them and use them. The problem is that many taxpayers either don’t pay attention to them or don’t prepare to use them. Most of these deductions and credits require that you track expenses and keep receipts. These are easy things to do if you create a strategy and system for tracking expenses. Make a goal in 2016 to take advantage of tax deductions and tax credits. You may be able to lower your overall taxes by doing so. The following tax deductions and tax credits are often overlooked. See if you qualify for any of them. By making a plan now for the coming year, you may be able to take advantage of more tax deductions and credits. Long Term Care Insurance Premiums You may be able to deduct premiums paid for qualified Long Term Care (LTC) insurance policies from you 2016 taxes. Some LTC policies qualify as “medical expenses” according to the IRS itemization definition. Talk with your tax adviser about the possibility of deducting these expenses; in many cases you can deduct them to the extent that your total medical expenses exceed 10% of your adjusted gross income. [+] Read More